Protecting Your Dealership - Lessons from the June 2024 CDK Cyber Attack

The recent cyberattack on CDK Global was a startling reminder for car dealerships nationwide of just how vulnerable their operations can be. With around 15,000 dealerships impacted and services brought to a standstill, the incident underscores why cybersecurity must be a non-negotiable priority—especially for used car dealers. If there was ever a time to double-check the security of your systems and processes, that time is now. Recognizing potential risks is the first step in safeguarding your dealership from threats like data breaches and transaction tampering.

Begin by taking a closer look at your dealership management system (DMS). Ask yourself whether it comes with robust cybersecurity features like encryption, multi-factor authentication, and routine security patches. If the answer is no, consider upgrading to a platform that places a strong emphasis on digital protection. Beyond technology, training your employees can make a world of difference. From phishing attempts to ransomware, cyberattacks come in many forms, and your team should know how to spot and avoid them. Frequent training sessions help staff develop the skills needed to keep both data and operations safe.

Backing up your critical data and keeping all software versions up-to-date are also vital components of a strong defense. Regular updates address newly identified security flaws, while backups ensure that if disaster does strike, you’ll be able to recover much faster. Working with a cybersecurity firm can add another layer of protection. Specialists can assess your setup, pinpoint any vulnerabilities, and recommend fixes. Though the services of these experts might appear to be an extra cost, they can ultimately save you from much bigger financial hits down the road.

Clear communication is crucial when dealing with a crisis situation. If you do face a cyberattack, make sure your staff knows how to proceed without risking further compromise. Be transparent with customers—letting them know you’re addressing the problem and are committed to securing their data goes a long way toward maintaining trust. Staying informed about the latest cybersecurity developments is equally important. By studying how breaches like the CDK Global incident happened, you can update your protocols and reduce the likelihood of falling victim to similar threats.

For many used car dealers, cybersecurity may have seemed like a secondary concern—until now. The CDK breach proves that no one is immune. Proactivity is your best defense: modernize your systems, invest in training, and partner with professionals who know how to tackle emerging cyber threats. By prioritizing these measures, you set yourself up for fewer disruptions, sustained customer confidence, and, ultimately, a stronger, more resilient business.